After weeks of rumors, Dell today confirmed that it has a definitive agreement to acquire Quest Software for $2.4 billion in a deal which will strengthen Dell’s offerings for data center management software. The acquisition is part of Dell’s broader strategy to increase its enterprise IT business, which offers better growth and profit margins than the consumer PC business. Software is a key part of that effort, as data center managers seek improved tools to manage their increasingly complex infrastructure.
Quest (QSFT) has a diversified software portfolio that generated $857 million in revenue in fiscal year 2011, with gross margins of 86 percent and operating margins of 11 percent. The company’s offerings include software for performance monitoring, server management, database tools, and security and access management.
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